717 EAST 1ST STREET LONG BEACH, CA 90802

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1 LONG BEACH, CA MULTI-FAMILY INVESTMENTS

2 LONG BEACH, CA Sale Price: $1,249,000 Sale Price/SF: $ Sale Price/Unit: $312,250 Rentable SF: 3,904 SF Lot Size SF: 7,511 SF Units: 4 Floors: 2 Cap Rate: 2.21% Gross Rent Multiplier: Year Built: 1919 APN: Financial Year: Pro Forma Gross Income: $51,600 Effective Gross Income: $52,572 Operating Expenses: $24,915 Net Operating Income: $27,657 Features: The 1st Street Apartments is a 1919 four-plex located just steps away from the beach in the prestigious Downtown neighborhood of Long Beach. Adjacent to East Village Arts District and Alamitos Beach Long Beach. The property is comprised of 4 Large 1 bedroom + 1 bath units. This property offers investors the opportunity to acquire a value add investment. The building is located one block from the ocean in a strong, non-rent controlled market. The Property is located in the prime Downtown submarket of Long Beach, just a short walk from the beach. The property is situated within a pedestrian friendly neighborhood close to Bixby Park, Bluff Park, Retro Row, and the booming East Village Arts District in Downtown Long Beach. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Corporate BRE# INVESTMENT SUMMARY For more information please contact:

3 717 East 1st Street ay et re Alam itos A ve. New Development t ree Br oa St 1st dw St 2nd t 1s Stre et long beach, CA DEMOGRAPHICS Demographic and Income Profile 1 M il e 3 Mi le s 5 Mi le s 1347 E 3rd St, Long Beach, California, E 3rd St, Long Beach, California, Ring: 1 mile radius Summary Popula ti on 49, ,022 Prepared by Esri Latitude: Longitude: Census Population 67,767 69,327 71,171 Households 28,035 28,691 29,529 Families 12,547 12,902 13, ,029 Average Household Size Owner Occupied Housing Units 5,631 5,291 5,347 Renter Occupied Housing Units 22,404 23,400 24,182 Popula ti on growt h 0.59% 0.68% 0.67% # of Household s 23,177 98, ,292 Median Age Trends: Annual Rate Population Households Families Owner HHs Median Household Income Area 0.53% 0.58% 0.65% 0.21% 2.70% State 0.73% 0.74% 0.76% 0.61% 3.36% National 0.75% 0.77% 0.69% 0.70% 2.66% Average Househo l d Inco m e $78,878 Median Age 36.1 $75, Households by Income $83,143 <$15,000 5, % 5,857 $15,000 - $24,999 3, % 2, % $25,000 - $34,999 3, % 3, % $35,000 - $49,999 4, % 4, % % $50,000 - $74,999 4, % 4, % $75,000 - $99,999 2, % 3, % $100,000 - $149,999 2, % 2, % $150,000 - $199,999 1, % 1, % % % This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about$200,000+ it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your Median advisors should Household Income Average Household Income conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CorporatePerBRE# Capita Income $38,162 $53,989 $22,667 Census 2010 Population by Age 2017 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All rights reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial affiliates fully supports the principles of the equal opportunity act. Each office is independently owned and operated. Coldwell Banker Commercial and the Coldwell Banker Commercial logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial affiliates. All information is deemed reliable $43,596 $62,028 $26, , % 4, % 4, % 3, % 4, % 4, % 3, % 3, % 3, % 4, % 4, % 3, % 6, % 6, % 5, % , % 13, % 14, % , % 10, % 11, %

4 MARKET CONDITIONS Submarket Overview The East Long Beach/Los Altos submarket, one of thirty-seven distinct geographic concentrations within Los Angeles, contains 18,551 market rate rental units, or 2.3% of the metro s total inventory of market rate rental apartments. In the ten-year period beginning with Q2 2007, new additions to the submarket totaled 30 units; over the same period, the metro growth rate has been 0.6%. Asking and Effective Rent Asking rents fell by 0.4% during the first quarter of 2017 to an average of $1,572, higher than nineteen of the metro s thirty-seven submarkets. Mean unit prices in the submarket are as follows: studios $1,341, one bedrooms $1,424, two bedrooms $1,811, and three bedrooms $1,892. Over the past four quarters, asking rents have risen a total of 0.9%, up from $1,558. The East Long Beach/Los Altos submarket s current asking rent levels and growth rates compare unfavorably to the metro s averages of $1,778 and 0.1%. Effective rents, which exclude the value of concessions offered to prospective tenants, also declined by 0.4% during the first quarter. The identical rates of change suggest that, although rents drifted downward, landlords managed to avoid increasing the relative value of incentives packages used to attract new tenants. Competitive Inventory, Employment, Absorption Net new household formations in Los Angeles were 8,630 during the first quarter. Absorption of market rate rental units may not immediately reflect quarterly total household formations or losses, but it is prudent to consider longer-term economic and demographic performance as influential upon current occupancy levels. Since the beginning of Q2 2007, household formations in Los Angeles have averaged 0.7% per year, representing the average annual addition of 22,400 households. Over the same time period, the metro experienced an average annual absorption rate of 4,393 units. Although metropolitan absorption totaled 1,277 units during the first quarter, the East Long Beach/Los Altos submarket did not contribute to this demand; in fact, tenant outmigration returned a net total of 36 units to the available stock. The first quarter s negative absorption in the submarket follows 36 units of positive absorption observed in Q Over the last four quarters, submarket absorption totaled negative 37 units; by comparison, the average annual absorption rate recorded since the beginning of Q is nearly flat. The submarket s average vacancy rate drifted upward by 20 basis points during the first quarter to 3.2%, which is 0.5 percentage points lower than the long-term average, and 0.1 percentage points lower than the current metro average. Outlook Reis s new construction observation team reports that no competitive apartment stock will be introduced to the submarket through the end of Between now and year-end, net total absorption will be negative 55 units. Consequently, the vacancy rate will continue to drift upward to finish the year at 3.5%. During 2018 and 2019, no additional competitive stock is expected to be introduced to the submarket inventory. Net new household formations at the metro level during 2018 and 2019 are anticipated to average 1.1% annually, enough to facilitate an absorption rate averaging 4,450 units per year. The East Long Beach/Los Altos submarket, however, will experience negative absorption averaging 70 units per year. The submarket vacancy rate will finish 2018 at 3.8% and will increase 0.5 percentage points to 4.3% by year end Between now and year-end 2017 asking rents are expected to increase 1.1% to a level of $1,590, while effective rents will climb by 0.9% to $1,541. On an annualized basis through 2018 and 2019, asking and effective rents are anticipated to advance by 1.2% and 1.1%, respectively, to finish 2019 at $1,628 and $1,575. Average Asking Rent $1,572 Down 0.4% from year-end Expected to finish 2017 at $1,590. * Information deem reliable but not guaranteed. Sourced from various industry research reports. Average Vacancy Rate 3.2% Drifted upward by 20 basis points. Highest level since year-end 2013 Expected to finish 2017 at 3.5% Powered by New Development or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Corporate BRE#

5 UNIT MIX MONTHLY REPORT Units Floor Plan Approx. SqFt. Avg. Rents Monthly Market Rents Monthly 4 1 bedroom / 1 bath 976 $1,075 $4,300 $1,600 $6, ,904 $4,300 $6,400

6 UNIT MIX & ANNUAL SCHEDULED INCOME UNIT MIX & ANNUAL INCOME REPORT Floor Plan Units Actual Total Market Total Studio 4 $12,900 $51,600 $19,200 $76,800 Total 4 $51,600 $76,800 ANNUALIZED INCOME Actual Market Gross Potential Rent $51,600 $76,800 Less: Vancancy ($1,548) ($2,304) Misc. Income $2,520 $10,800 Effective Gross Income $52,572 $85,296 Less: Expenses ($24,915) ($26,592) Net Operating Income $27,657 $58,704 Debt Service ($28,622) ($28,622) Net Cash Flow after Debt Service ($965) $30,082 Principal Reduction $8,798 $8,798 Total $7,833 $38,880

7 ANNUAL EXPENSE REPORT ANNUALIZED EXPENSES Actual Market Property Management Fee $2,165 $3,072 Replacement Reserves $900 $900 Building Insurance $900 $900 Maintenance $900 $900 Repairs $2,400 $2,400 Taxes - Real Estate $15,250 $15,420 Utilities $2,400 $3,000 Total Expenses $24,915 $26,592 Expenses Per RSF $6.38 $6.81 Expenses Per Unit $6,229 $6,648

8 Address Sale Price Units Price/SF Cap Rate GRM Sale Date 717 E. 1st Street 1 Bonito Ave 126 Bonito Avenue 1323 E. Florida Avenue 1727 E. 1st Street 3032 E. Vista Street Long Beach, CA E. 2nd Street Long Beach, CA SALES COMPARABLES $1,249,000 4 $ % 23.1 N/A $2,050,000 4 $ % /18/2017 $1,140,000 4 $ % /28/2017 $1,100,000 4 $ % /23/2016 $1,095,000 4 $ % /12/2016 $1,375,000 4 $ % /28/2016 $1,575,000 4 $ % /18/2016 Avg. 3.5% Avg Avg. $347,292 Avg. $423.23

9 LOCAL RETAIL MAP The Pike Outlet Marketplace 1st Street Ocean Blvd. Alamitos Ave. 717 east 1st street long beach, CA Long Beach Convention Center Alamitos Beach